John Blackledge, an analyst from TD Cowen, maintained the Hold rating on Wayfair (W – Research Report). The associated price target is $45.00.
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John Blackledge has given his Hold rating due to a combination of factors including the anticipated revenue decline and challenges in the Home category. Despite Wayfair’s strategic move to exit the German market, which is expected to boost EBITDA in the coming years, the overall revenue is projected to drop by 2.1% year-over-year in the fourth quarter of 2024. The management has observed a broader consumer pullback, particularly ahead of the US election, and a shift in consumer behavior towards smaller ticket items.
Furthermore, while there is some improvement in the company’s fulfillment programs, including incentives like free storage to boost inventory movement, these efforts may not be enough to offset the decline in active customers and orders delivered. The average order value is expected to rise, but the overall sales and customer engagement metrics indicate a cautious outlook. Therefore, these mixed signals and market uncertainties underpin Blackledge’s decision to maintain a Hold rating on Wayfair’s stock.
Blackledge covers the Communication Services sector, focusing on stocks such as Meta Platforms, Alphabet Class C, and Pinterest. According to TipRanks, Blackledge has an average return of 12.6% and a 58.72% success rate on recommended stocks.
In another report released on February 3, Bernstein also reiterated a Hold rating on the stock with a $45.00 price target.